Investing can be a great way to build your wealth and create the life you always wanted for your family. However, investing can seem like such a hard thing to do. Many people come up with different excuses like “I don’t have enough money to invest,” or “I don’t have the time to invest right now.” Simply put, you make time for the things you want and you can always invest with very little money. You can even start investing just $5 a week. With 52 weeks in a year and roughly 28 weeks left, you can save up at least $140 if you get started today. That alone can help you start bigger investments! All you need to do is get started investing today. Here are 3 ways to start investing with little money.
3 Ways to Start Investing With Little Money
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You may not think you have everything you need to start investing, but in reality, you do. There is always a way to make an investment in your future. Getting started is the biggest key.
1. Try The Old Fashion Way – Piggy Bank Method
The piggy bank method is a great way to start saving. It can also be a great way to start investing with little money.
With this method, you can start with as little as $0.01 and work your way up the ladder. Once you have reached a point where you feel you can invest at least $50 – $100 a week or even a month, you’re doing pretty good. There are 3 different types of “piggy banks” that you can invest in (check out the article, it’s a good one), each one will serve a different purpose at different points in your life.
At this point, you’re probably trying to save for longer-term goals, such as your child’s future or your retirement. Whatever the case, you will be well on your way to making a bigger investment in your future.
The great part about all this is, you don’t have to actually have a traditional “piggy bank” to get started.
You can use:
- an empty mason jar
- a coffee can
- a plastic jug
- (or Derek’s personal favorite…a big plastic mixed peanuts container…;))
Anything can be used as a makeshift piggy bank. Just use your imagination to create it and start investing money for yourself.
2. Use Investment Apps to Start Investing
You can start investing with little money today by using investment apps. Investment apps, such as Stash, Acorns, and Digit, can all help you start investing with as little as $5. You can use all three apps or just choose one that you think is best for you.
With Stash, you can invest by buying small fractions of stocks. It is $1/month to use the app but you can link your bank account and choose how frequently you would like to invest in your portfolio. You can also use funds in your portfolio toward your Stash bank account or you can transfer those funds to an external bank account. A Stash debit card is available now for access to the funds that you transfer from your portfolio. Every time you use the debit card, you receive Stock-back rewards for each transaction.
With Acorns, you can start investing by using spare change from your bank account. You can even set up a recurring investment if you want. There is no minimum limit to start investing but it will cost $1/month if your investment is less than $1 million. The app offers different topics to help you learn about debt, investing, saving, and even credit. There are even companies, such as Postmates and Liberty Mutual, that will invest money in your future when you shop with them. You can track all this and more within the app.
With Digit, you can save money and pay off debt. You can choose a goal to reach for your investment, like building a retirement nest egg or just having an emergency cushion. Money is then automatically added to your Digit account for each goal. Digit is $2.99/month after your 30-day free trial.
Related: Why I Refuse to Automate My Savings
3. Start Investing Using an Employer Retirement Plan
Finally, investing in an employer retirement plan can be a great way to start investing with little money. If you are currently employed, this is one of the best options for you. There are different employer-sponsored plans available, such as a 401k or a pension plan. It’s possible for you to make a 1% contribution and you have a choice to raise that at any time. You may still need to invest in passive income streams but this can definitely be one source of income in retirement.
Start Investing With Little Money Today
You may think that you are broke, but that doesn’t mean it is not possible for you to invest in your future. Even though you may have very little to invest, that little bit can add up to a lot over time. There is always an opportunity, just look at this moment in time as your “pre-rich” period. 😉
Are you ready to start investing your money in your future? Which method will you choose??
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.